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October 11, 2011

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Talk but no signing on gas deal

CHINA and Russia will discuss a proposed gas deal during Prime Minister Vladimir Putin's visit to Beijing, but a Russian official said yesterday that no agreement would be signed.

Putin's two-day visit, which starts today, will be his first foreign trip since revealing plans to reclaim Russia's presidency. He could seek to narrow price disagreements that have stymied Russia settling a 30-year deal to supply China with up to 68 billion cubic meters of gas per year.

Chinese Foreign Ministry spokesman Liu Weimin told reporters that during the visit, Chinese Vice Premier Wang Qishan would hold a fresh round of energy cooperation negotiations with Russian Deputy Prime Minister Igor Sechin.

Liu did not comment directly on any prospects for a gas agreement. The export chief of Gazprom, the Russian gas supplier, said last month that the five-year-old negotiations might not end this year.

"Chinese-Russian energy cooperation is an important part of the two countries' strategic cooperation," said Liu.

"The meeting between Deputy Prime Minister Sechin and Vice Premier Wang Qishan will allow more thorough exchanges of views on energy cooperation," he said.

In Moscow, a senior government official said Putin had no plans to sign a gas pricing deal during his visit. "The signing of the gas pricing deal is not planned at this point," said Yuri Ushakov, the government's deputy chief of staff.

He said a delegation of officials, experts and energy sector executives, headed by Sechin, was already in Beijing to discuss a wide range of issues, including future gas supplies.

Russia wants to diversify its trade with China, which is expected to grow to US$100 billion in 2020 from US$59.3 billion in 2010.

"This is very important for us. Our exports are massive but are mainly resource-based. We are not happy with it. We will discuss measures to correct this," Ushakov said.

Putin and Chinese President Hu Jintao will discuss the Syrian issue after China joined Russia last week to block a proposed UN Security Council resolution that Western powers backed to condemn the crackdown there, he added.





 

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